Nigerian oil firm Oando said on Monday it has secured a 94.6 billion naira ($475 mln) loan facility from 10 domestic banks under plans to restructure its finances and return to profitability this year.
The financing led by Access Bank, includes Diamond Bank, Ecobank, FCMB, Fidelity Bank, Stanbic IBTC Bank, UBA , Union Bank and Zenith Bank.
The facility is a five-year term loan, paying Nigerian interbank rate plus 2 percentage points with a three-year moratorium on principal.
“In a bid to return to profitability in 2016, I am happy to announce the successful completion of restructuring our overall debt profile,” Chief Executive Wale Tinubu said in a statement.
Oando is still due to post results for 2015, having reported a $246 million loss in the nine months to September. The company posted a record loss of $1.10 billion for 2014.
It paid $1.5 billion to acquire ConocoPhillips’ Nigerian business in 2013, when oil prices were at a peak. But high financing costs coupled with the plunge in oil prices have hit profits, leaving it unable to service its debt.
In April Fidelity Bank said it had placed a 22.4 billion naira loan ($113 mln) to Oando on a watchlist and taken a special provision of 5 percent on the advice of Nigeria’s central bank to all lenders exposed to the company.
Fidelity then said the central bank had given lenders a deadline to reach a deal to resolve the debt issue, which would include a sale of assets.
Oando said on Monday its restructuring plan would include the sale of assets worth $350 million this year.